Im guy johnson. Francine lacqua is off today. We begin with the mega oil deal. Shell has agreed to buy bg group for around 47 billion pounds around 70 billion in cash and stocks. That makes it the biggest deal in the oil and gas industry for at least a decade. Caroline hyde joins us at the touchscreen. Caroline a cool 47 billion pounds. A cool 50 premium on bgs share price. This is record data in terms of size of move, but if you go back, it is only since july 2014 when we last saw this price on bg group. That was the amount that the oil prices plummeted dragging down the price of oil stocks. Suddenly, everything looks a little bit fairer valued. That is what has capitalized this deal to spark the Biggest Energy deal in a decade. Suddenly, assets look well priced. Creating the secondBiggest Energy company in the world this would be the biggest player in the ftse 100. It will have sheer size and scale. Interestingly, shell saying, we will build a company with three pillars. They are goi
Francine im francine lacqua. Central banks are in focus today. The fed left open the possibility of raising Interest Rates in the second half of the year. Guy bank of japan kept the status quo. It will keep adding 80 trillion yen to the monetary base. Brazils central bank boosted their Interest Rate for the fifth time in an effort to fight inflation. Finally the Russian Central Bank Rate Decision. Francine for more on this lets bring in james, a senior economist. Lets talk fed. It seems yellen is hanging on to this rate increase despite the weak economy . Is it a sign that she expects it to increase or is it a sign they are trying to give to the markets . James they are expecting real Household Income growth which they sounded upbeat about in the statement. It will feed to Consumer Spending and increased Business Investment down the track. I think they are hopeful that is going to happen. It struck me by not after the march meeting and by not saying there was no predetermined path like
Lender lloyds, posting a profit bigger than estimated. For more, lets bring in mark and richard. Richard, lets start with you. In terms of what lloyds is doing, this is better than expected. Richard it is. These numbers are pretty good. There are no items really below the line, which we werent expecting. There was a charge for the tsb. However making a 1. 2 billion pound profit after that is still pretty good. They also said they expect to beat their own guidance for profitability margins this year. That is pretty good for a bank that is already producing some of the best profitability among british lenders already. Guy and theres francine and theres nothing in terms of provisions. Richard i think theres a feeling that it is just this quarter. Last year, lloyds didnt take any provisions. Last year, it took over a billion pounds worth of provisions for the payment protection insurance. That would probably help this year. Some analysts are expecting about one billion pounds of gain. That
Career politicians together without having a goal in mind also supporting the constitutional line item veto to help residents cut out unnecessary spending in a constitutional way. Will we need to do to get by Budget Priorities in line is to prioritize to demand accountability in to not have everything centralized at the federal level. As it relates to our deficits to pay down the dead of the grandkids to move forward we have to get this economy going again. It is in growing and hasnt been talking about fewer jobs than seven years ago there are 13 million fewer working and the economy this stage in the recovery. If we have revenues we can have the deficit reduction and longterm Debt Reduction that this economy needs to keep a strong viable economic leader in the world. To talk about the needy citizens we cant do that if we dont have a healthy growing economy. Standiford unfortunately we cannot balance the budgets by tinkering around the edges. To be significant cuts and significant area
Speaking about it. And it took me a second to realize that that that my desk was was kind of swaying as one of our reporters was just saying it did feel more of a stir, then a jolt. Can you explain a little bit why that happens . Why sometimes they feel different. Yeah, absolutely. So it depends about which part of your great shape when youre feeling. Im assuming youre downtown you read that entire, but youre little bit away away, right . To be a slightly just south of town of just in the front of sight and sewing for frances for you all help the shaking that the commissioner of other way, you probably didnt feel the best arriving. He publicly about the light night, her plate, which is known as the strongest shaking. And so if youre close the epicenter of not great, you feel that from which is that he arriving at your location. If you white. It just speaking more that is why which is the exwife worked motion. So i think thats probably what youre experiencing. Definitely talk to me. You